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GST Council meet: Will Centre reduce GST on Telangana irrigation projects? - ABN

Sat, Sep 09, 2017, 08:41 AM
The 21st GST Council meeting will take place at HICC in Hyderabad on Saturday. The Centre imposed 18 per cent GST on irrigation projects. Contractors informed the state government that they cannot bear additional GST burden of Rs 18,000 crore. After finalising tenders if the tax is increased then the government has to bear the burden. Considering Telangana government’s request, the Centre reduced the GST to 12 per cent. Still then, the KCR government has to pay Rs 12,000 crore towards GST. The state government asked Centre to reduce the GST to 5 per cent on irrigation projects.
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